Describe the three elements of VFM
The value for money (VFM) concept has been developed as a useful means of assessing performance in an organisation which is not seeking profit. VFM concept revolves around the 3Es； as follows:
If you follow through the diagram above, you will see that, ultimately, VFM relates money spent to objectives achieved.
??Economy (an input measure) - measures the relationship between money spent and the inputs. Are the resources used the cheapest possible for the quality required?
??Efficiency (link inputs with outputs) - is the maximum output being achieved from the resources used?Effectiveness (links outputs with objectives) - to what extent to which the outputs generated achieve the objectives of the organisation.
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Explain what is meant by standard costing
Explain what is meant by a standard cost
Describe four types of standard.
Explain what is meant by a standard hour.
Give five possible sources of information from which a standard materials price may be estimated.
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